Savings trick: The 8% Regular Saver from First Direct is a good option for those looking to save up to £3,600

With this current account, you can also open its 8% Regular Saver, which comfortably beat similar rival accounts.

If you have a lump sum to drip feed in, this headline grabbing rate is not a true reflection of what you will end up with over a whole year on all your cash, but is still a good offer in the barren current savings environment.

The maximum you stick away in this savings account is £300 per month – so £3,600 a year. If you were to invest £300 per month into the First Direct Regular Saver, you’d receive approximately £156 gross after 12 months.

The £156 interest mentioned above is the equivalent of 4.3 per cent on the £3,600 sum. Currently, this beats all savings rates available and means those with smaller sums to stash away can grab a better rate, albeit with a little bit of work.

Add to this the £125 First Direct will pay you for joining and that means £281 for switching and saving with First Direct. Set that against your £3,600 and it is the equivalent of a 7.8 per cent annual return.

And there is even an opportunity to grab an extra savings booster.

Place the £3,600 into a top paying easy access account at the start of the 12 months and transfer the money to First Direct each month as required, you’ll earn a dwindling amount of interest in this account too – but you must make sure you work out the logistics of transferring the money to First Direct on time each month.

Sticking £3,600 in here for a year without touching it would garner you £72.66 – a somewhat lower sum with the First Direct saver interest and the switching bonus. But drip-feeding it from one of these accounts into First Direct each month will earn you a little more interest on top of the £281.

The Regular Saver doesn’t allow missed monthly deposits but you can vary how much you save each month – remember though sticking in the full £300 per month will mean you get the highest rate possible.

It also doesn’t allow withdrawals, so savers need to ensure they don’t need instant access to the cash as it will close the account and you will get just 0.5 per cent on the balance you’ve saved.

One vital thing for savers to remember is that the First Direct saver is not a tax-free Isa account. That means you will have to pay tax on your interest, for most this will either be at 20 per cent or 40 per cent.

That savings tax takes the 4.3 per cent annual return on your £3,600 down to the equivalent of 3.5 per cent for basic rate taxpayers and 2.58 per cent for higher rate taxpayers.

Crucially, however, the £125 for opening the account is a gift and so should be considered tax-free.

Add it to your £125 post-tax interest for a basic rate taxpayer and you have a 6.9 per cent return on your £3,600, or add it to the £93.60 post-tax interest for a higher rate taxpayer and you have a 6.1 per cent return.

First Direct is an internet and phone-only bank and often tops satisfaction league tables.

According to a report from consumer group Which? in September, First Direct had a satisfaction score of 86 per cent, the highest out of 30 financial brands, with Santander at other end of the table with 46 per cent.